Equifax Doubles Down On Growth Plan Despite Mortgage Market Woes

Equifax Inc's EFX latest Investor Day event increased confidence in the company being able to achieve its 2025 and long-term guidance "by focusing on efficient growth despite a choppy mortgage market," according to Needham.

The Equifax Analyst: Analyst Kyle Peterson maintained a Buy rating and price target of $295.

The Equifax Thesis: The company reaffirmed its full-year guidance for organic revenue growth of 5%–7.1% for FXN and earnings of $7.45 per share at the midpoint, Peterson said in the note.

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Equifax also reiterated its long-term targets of 8%–12% revenue growth run rate, with 7%–10% organic revenue growth, he added.

"The company plans to invest ~$1B annually in CapEx/M&A, while returning an additional ~$1B per year to shareholders through dividends and buybacks," the analyst wrote.

Importantly, these targets do not consider any recovery in the mortgage market, "which would be a $1.2B revenue opportunity" when trends begin normalizing.

EFX Price Action: Shares of Equifax had risen by 0.74% to $255.26 at the time of publication on Friday.

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